Despite the closure of the Citizenship by Investment program and the coronavirus pandemic, Limassol continues to be the main destination for buying and renting real estate in Cyprus.
Contrary to popular belief, the Limassol property market shows no signs of saturation and continues to be dynamic.
Of course, it cannot be denied that the cancellation of the investment scheme had an obvious effect. However, interest in luxury real estate in Limassol has not completely disappeared, and local real estate companies are slowly adjusting to this.
As you may know, according to the PwC report, 54% of real estate transactions in Cyprus in 2020 worth more than €1.5 million were registered in Limassol.
Given that there is still quite a lot of affordable luxury real estate in this region, developers should make appropriate adjustments.
In any case, in 2020 Limassol significantly outstripped other cities of the island in terms of transaction value (total amount exceeded 1.1 billion euros) and became the second largest city in terms of transactions (28% of the total amount).
Since the pandemic and its impact on economic growth are under government control, there is no doubt that real estate development throughout Limassol will continue at a rapid pace.
After all, it is no coincidence that the Limassol area has historically received the highest number of building permits issued.
At the same time, in the future, construction will be concentrated mainly to the west of the city.
- Implementation of several large projects in the area. In particular, we are talking about a new casino resort, a golf course, an extension of an existing shopping center.
- The largest available building plots are located west of Limassol.
Of course, there are available building areas to the east of the city, but their area and number are very limited. There are not many opportunities for further development here.
In terms of residential real estate, which is mostly bought by locals, the Agia Fyla and Agios Athanasios areas, north of the highway, have more potential for growth.
In the past few years, these areas have seen serious development, they are relatively close to the city center, and there are plots free for development in this region.
Previously, we could observe a boom in construction in the city center and on the coast. By the way, there are not many free plots left here. It is possible that in this particular area, existing buildings will be refurbished, modified, refurbished and modernized in the future.
If you look at the 28% decrease in the number of sales contracts in 2020, compared to 2019, it is obvious that the Limassol real estate market is largely dependent on foreign buyers.
At the same time, despite such a drop, Limassol strengthened its leadership position in Cyprus, receiving 31% of the total number of sales contracts. The future of the real estate sector in Limassol may be full of challenges, but full of potential, which will allow the city to continue to be the capital of the country in the field of development.
More information about new residential and commercial projects in Limassol you can find out on the DOM. The site also features over 20,000 properties in Cyprus. Choose and contact professionals who will help you make the right choice!
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